For each of the following cases, indicate (a) what interest rate columns and (b) what number of periods you would refer to in looking up the discount rate. (1) In Table 3 (present value of 1): Case A Case B Case C Case A Case B Case C Case A Case B Case C Annual Rate Case A 9% 14% 12% (a) Annual Rate - 10% 9% 8% Number of Years Invested (a) 6 (2) In Table 4 (present value of an annuity of 1): Number of Years Involved 10 8 % 17 % % Discounts per Year Annually Semiannually Semiannually Number of Payments Involved 17 (b) 5 14 (b) periods periods periods Frequency of Payments Annually Annually Semiannually periods
For each of the following cases, indicate (a) what interest rate columns and (b) what number of periods you would refer to in looking up the discount rate. (1) In Table 3 (present value of 1): Case A Case B Case C Case A Case B Case C Case A Case B Case C Annual Rate Case A 9% 14% 12% (a) Annual Rate - 10% 9% 8% Number of Years Invested (a) 6 (2) In Table 4 (present value of an annuity of 1): Number of Years Involved 10 8 % 17 % % Discounts per Year Annually Semiannually Semiannually Number of Payments Involved 17 (b) 5 14 (b) periods periods periods Frequency of Payments Annually Annually Semiannually periods
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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H1.
Transcribed Image Text:Case A
Case B
Case C
(2) In Table 4 (present value o
Case A
Case B
Case C
Case A
Case B
Case C
Annual Rate
10%
9%
(a)
8%
(a)
17
%
an annuity of 1):
5
%
Number of
Years Involved
7
%
%
%
%
Number of
Payments Involved
17
(b)
5
14
(b)
periods
periods
periods
Frequency of
Payments
Annually
Annually
Semiannually
periods
periods
periods
Transcribed Image Text:For each of the following cases, indicate (a) what interest rate columns and (b) what number of periods you would refer to in looking up
the discount rate.
(1) In Table 3 (present value of 1):
Case A
Case B
Case C
Case A
Case B
Case C
Case A
Case B
Case C
Annual Rate:
Case A
9%
14%
12%
Annual Rate
(a)
10%
9%
8%
Number of
Years Invested
(a)
6
10
(2) in Table 4 (present value of an annuity of 1):
8
%
%
17
5
%
Number of
Years Involved
Discounts
per Year
Annually
Semiannually
Semiannually
Number of
Payments Involved i
17
(b)
5
14
(b)
periods
periods
periods
Frequency of
Payments
Annually
Annually
Semiannually
periods
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